PM announces landlords will have to do their bit!!

No lock down here yet, just economic destruction.

 

Contingency plan is not something we can demand of one group (landlords) without demanding of the other (tenants). Suggesting this doesn't help.

Contingency plan works for those with just 1 property AND a good job. But not for landlords that have an unstable job in this time.

Nobody can handle 6-12 months with no rent on 5 mortgages, or 10 etc regardless of buffer. We plan for having up to 20% empty not 80%. Having assets doesn't help, as they can't be sold in this period especially if occupied & no rent.

The better option is not to take from one and give to the other, nobody knows if the landlords a cash poor retiree with 1 property or a doctor earning hundreds of thousand per year. The better option would be to provide cashflow support to cover the rent otherwise it makes the landlord bankrupt instead of the tenant.

News now doesn't look like any cashflow support unfortunately https://www.smh.com.au/politics/fed...Social&utm_source=Facebook#Echobox=1585164778

 

Well the other option is I evict and sell it and potentially go under myself. It’s not evicting to save a %

it’s to move into it and having the choice to get tenants into the other property, helping both us out and helping another tenant needing a home out. I think you mis read the post.

 

What about offering a partial rent deferal?

 

Whatever you decide to do just be aware that all/Most/some Landlord insurances wont cover you if you agree on reduced rent or rent free periods,

@Codie is copping some flack for his motivations, which Im staying out of, however, with all of this talk of government disallowing evictions and encouraging tenants to ask for lowered rents, mortgage holders arent getting any help except for repayment holidays, which means, we still have to pay it back, UNLIKE renters

so until things change in that arrangement, I am looking after my own interests first

 

People always look to point fingers at a heightened or emotional time like this, I get it.

Its a sad reality that a lot of people renting would love to see a market crash, fire sales, and landlords struggle (until they buy of course) we are no different as people.

Its not that I don't want to help, and will work with my tenants to the best of my ability. Reducing rent by $25 a week is doable, however reducing by half as some others are experiencing is just not possible. We are all in the same situation and just because you have your name on the title does not resolve you from having to pay your way.

100% agree @TMNT until the playing field is level and we are able to get some assistance, a lot of landlords wont be able to help out that much.

Renters should theoretically be in a better position than some owners, 1 payment is it. However if you have just bought and have an 80% mortgage you have a ton of other expenses that don't go away. its not a free ride for anyone.

 

Well I have done my bit to help out ....

My existing rental agreement for one of my Melbourne IP expires at early June, we have just offered our tenant (lovely couple with cats, but they did buy a whole bunch of claw sticks for cats to claw) a $20 reduction in rent if they sign up a new 12 month lease beginning in April. They said yes to it, my PM is now doing the paperwork ....

Speaking with my PM, she said she has been very busy with both tenants and landlords calling her crying about their job losses, and how they could not pay the rent or mortgage repayments going forward. So this crisis is getting real for all tenants and landlords ....

 

All this talk about stop evictions. 1 or 2 months is okay but 6 months is really worrying. It is clearly just in favour of tenants without thinking of landlords who may be struggling themselves. I have even seen comments from stupid people saying: "If you have an investment property you must be rich".

So in this case I don't agree that Codie is being immoral and selfish. He is looking out for himself first because no government organisation is going to look after us. If you don't take precautions for yourself, no one is going to. And you could potentially get yourself into financial haemorrhage.

 

I am really angry about the govt focus on the economy over lives. A hard and fast lock down would have saved many lives and may have shortened the economic impact. I truly believe that we are now facing devastation of our health service and our economy. But you can bet your fragile lives that the govt including the so called medical expert advisors will have their financial ducks in a row before that comes....that's why the delays! I am a front line nurse who owns 2 investment properties. If my tenants don't pay I will experience significant financial hardship in the short and long term. Perhaps I should just refuse to do my job so I can be dismissed and claim the double dole. Why not I won't have much to lose, especially if I am dead. If you think I am being melodramatic save your comments for 4 more weeks.

 

The Government should start from the bottom up: welfare to tenants so they can pay the rent, so the RE industry doesn't get obliterated (remember it's commission based so no rent = no pay = no PM's to manage the properties = turmoil for the majority of managed properties), Lessors can then pay the mortgages; not much changes.

The way they're doing it is stupid: banks to defer mortgage payments = interest on top of interest + admin work, tenants to have deferred rent payment (no interest payable - Lessor cops that shortfall from the banks) and no evictions = no pay = no PM's = properties at risk from debtor and unevictable tenants some who will take advantage of the new laws and reek havoc on mum and dad investments who will not have the cash to fix it after they're eventually gone, and anyone's guess where the landlord insurers will draw the line if tenant commits breachable offence but Gov says can't evict - Lessor/Agent should still go through breach>NTL>xCAT process (which will be rejected) to not void policy in the hope it will cover the loss incurred. Huge amounts of admin. What a mess.

 

Everything aside. Thank you for doing what you are doing!

There has been some bad decisions made across the board and I don't think anyone will disagree with you here. Everyone is feeling it and also getting impacted one way or another. Stupid decisions or indecisions make it less fathomable.

 

Have you got Landlord Insurance, and if so, what does your policy say about loss of rent?

 

The Liberal government were very critical of how Labour handled the GFC , their policy is always about looking after business first, not the other way around.
They never really had the courage to deal with the really high debt levels with consumers, now every single group is out looking for handouts .

 

Investing is investing, you gotta take the good with the bad. All the landlords were extremely happy taking more than enough to cover repayments before this happened..
Also pretend none of this happened & as an investor you lost your job, would you expect the government to give you hand outs to cover your investment repayments? No you'd have to sell off assets to stop the repayments.
Investing is risky, you've all just been on a bull run for a long time & got blindsided.

Also maybe if people only bought a ppor, house prices might have stayed reasonable so more renters would be in their own ppor's, Aussies should have been investing in Australia as a whole in all sectors, not just houses.

I'm sorry if that sounds harsh to landlords, but some are acting like there's a guarantee that protects their investments..

 

Well that sounds like a bad investment.. relying on government handouts - negative gearing. Waiting for capital gains, which now seems unlikely? Maybe

 

Then why are you replying to my comment? I was talking about landlords that want compensation...

 

Also Investors also don’t really push prices up. Owner occupiers do, and most recently FHB’s (the exact people this person is advocating for)

I must have also missed the bull run spoken of, along with most in Perth, Brisbane, Adelaide, NT etc You would also be up a creek buying just a PPOR in Sydney/Melbourne in the last 2yrs and then loosing a job.

it’s funny how the ones commenting that don’t invest In property, know so much about it..